Much like Three Roots Capital (3Roots) invests in projects and companies throughout East Tennessee and greater Appalachia, 3Roots also invests in its own internal systems, tools, and processes.
“We are preparing for growth, planning for the long haul and being intentional in our pursuit of excellence because the communities we serve deserve it,” said Kim Krebs, Loan and Investment Administrator. “Our clients deserve to work with a community development financial institution (CDFI) that’s sophisticated but also still shakes hands and looks people in the eye. We want to help these businesses succeed.”
Prior to 2023, 3Roots explored and utilized several tools for portfolio administration and management. Beginning in earnest in January 2023, 3Roots began working closely with DownHome Solutions to fully implement DownHome Loan Manager (DLM), a cloud-based loan management software used extensively in the CDFI industry. DLM enables 3Roots to manage its entire portfolio in one place, consolidating databases and integrating with the accounting system, thereby increasing efficiency and positioning 3Roots for future growth.
“This move is extremely forward-thinking for a CDFI of our size,” said Kim. “We’ve been around since 2016. But as we discuss these updates with our bank partners and borrowers, we’re instilling confidence that we plan to be here for the long haul.”
The initial implementation process spanned from February until October 2023. It required fully capturing and cataloging the important business data and then organizing and harmonizing the data into the framework of the new software. This allowed the creation of a single, robust database that houses critical information for the staff at 3Roots to have at their fingertips to improve accuracy, productivity, and efficiency.
“Launching DLM was a huge undertaking,” said Kim. “However, I don’t think I could have learned this business as intricately as I have learned it without going through it. That process was priceless—baptism by fire.”
Kim spearheads implementation of additional operational solutions to set 3Roots up for long-term success, including partnering with Omega Digital Solutions.
In late 2023, 3Roots began working with Marcus Blair, founder of Omega Digital Solutions and graduate of 100Knoxville, to build an advanced reporting tool and business management dashboard. This new feature will allow the team to have daily updated information at their fingertips, enabling them to make better decisions with a growing portfolio. The tool should launch later this summer. “Marcus is wonderful to work with,” said Kim.
“DownHome Solutions and Omega Digital will never replace our hands-on approach, but the tools they provide will allow us to become more streamlined,” said Kim. “Instead of paperwork demanding so much of our resources, we can spend more time creating solutions, being hands-on and face to face with our clients.”
In early 2023, 3Roots President and CEO Grady Vanderhoofven introduced the company to Don Dally and his Farragut-based IT services company, NerdsToGo Computer Service. Grady had been friends with Don and acquainted with Don’s business for years. Grady asked Dennis Corley – because of his background in IT services – to help assess NerdsToGo as a potential local complement or supplement to 3Roots’ Nashville-based IT service provider. After an assessment period, 3Roots began working with NerdsToGo Computer Service to improve the company’s IT infrastructure to support new digital tools and a growing number of team members.
“They’ve been fabulous,” said Kim. “Instead of calling a helpline to be put in a queue for them to call you in several days, NerdsToGo will help us immediately and have even come to our office personally to offer support. That’s invaluable.”
“Three Roots Capital is an ideal client for NerdsToGo as we expand our presence in the small business enterprise sector. Our expertise and capabilities align well with their needs, allowing us to add significant value to their operations,” said Don. “Serving Three Roots Capital is particularly fulfilling, as we can support their mission to make a positive impact in our local community and the broader region.”
Looking ahead, 3Roots is in the discovery phase for a new software platform to support the deal intake process with potential new clients, and they are exploring options to increase tracking and reporting efficiency for grant administration and impact tracking.
“Contracting with NerdsToGo and Omega Digital allows 3Roots to directly support our local small business community as a customer,” said Grady Vanderhoofven, President and CEO. “This scenario is a win-win for us. We make loans and investments in our community, we provide coaching and mentoring, we help companies and projects establish beneficial connections, and when we can, we support our local small business community as a customer. 3Roots is a strong proponent of the concept of buying local when possible.”
“3Roots has dramatically increased our capacity to pursue and deploy high-impact capital for organizations and projects,” said Grady. “We have many financing tools in our financial toolbox, but there are other ways we can support local businesses, and we strive to do so. Our ability to positively impact our local and regional economy increases as we scale our back-office operations. I’m thankful for Kim’s drive and vision for 3Roots. She has allowed us to increase our efficiency and productivity, which empowers us to magnify our impact.”
